The geology of the properties is consistent with regional trends. Coal seams of economic importance on the properties typically range from 1 foot to 6 feet in thickness and are primarily low-volatile in rank. There are 11 coal seams on the properties that demonstrate reserve or resource potential including (not all of which are included within this report), in descending stratigraphic order: Sewickley, Redstone, Pittsburgh, Bakerstown, Upper Freeport, Lower Freeport, Upper Kittanning, Middle Kittanning, Lower Kittanning, Brookville, and Mercer.

Mineable coal seams within the properties are typically low-ash, low to high-sulfur, and high-thermal content bituminous coals. Regionally, the coals are typically low volatile in rank, with rank increasing from west to east. The maximum seam thickness may reach over 6.0 feet where multiple coal benches occur in proximity to one another; however, the average mineable thickness of the seams in this evaluation generally ranges from 1 foot to 4 feet. Seams are generally continuous, but may be locally absent. Secondary discontinuity due to erosional features is present in most areas, resulting in seam outcropping, or visible exposure of the seam at the surface. Other than oxidation of the coal exposed at the surface, erosion of the seams has no significant impact on the mineralized deposits. Mineable seams associated with the properties are generally outcrop-accessible. Coal seams are characterized by both single-bench and multiple-bench coal horizons with parting (non coal) material varying by seam and area. Seam parting is common within the coal seams on the properties with intra-seam parting material increasing drastically in some areas. Roof strata are typically shale or sandy shale with zones of sandstone roof being common. Floor strata are typically sandstone, shale, sandy shale, fireclay, or in the case of the Upper Kittanning, limestone.

Limestone beds occur within the various stratigraphic groups of the region. Some of these limestone beds are extracted in conjunction with surface mining of the Sewickley coal in particular.

NAPP currently operates the Casselman Mine, an underground mine utilizing the room and pillar mining method.

The Casselman mine is an active mine in the Upper Freeport seam. This mine is a metallurgical coal operation on leased mineral property.

Production is scheduled for 255 days each year, which represents production on Monday through Friday. On each day, one production section is scheduled to produce coal on two shifts; the third shift is reserved for maintenance and mine conveyor belt and power moves. The sections are configured as regular sections with one continuous miner available for production on each section. Productivity is planned at the rate of 250 feet of advance per shift of operation. A total of 97 employees are assigned to the mine.

Principal production equipment includes two continuous miners, four roof bolters, three shuttle cars, a continuous haulage system, and two scoops. Coal is extracted from the production face with the continuous miner and hauled to the mine conveyor in shuttle cars or via continuous haulage. At the conveyor belt, the coal is discharged onto a feeder breaker for transfer onto the conveyor. The conveyors carry the coal to the outside, where it is stacked on the ground to await truck transport to the preparation plant and load-out. The truck haul cost is estimated to be $7.36 per ton.

Expected annual production averages approximately 617,000 marketable tons.

The mine currently produces from the Upper Freeport seam using two continuous miner sections, with the ROM production being hauled by truck to the Cambria preparation plant.

The Cambria Preparation Plant is designed for 400-tons per hour (tph) raw coal feed. It was relocated from its original site in 2009 incorporating design upgrades at that time. Raw coal at the Cambria plant is crushed screened to provide sized material to each of the following process circuits.

The Cambria complex has the capacity to store 120,000 tons of clean coal. The plant is serviced by CSX and has a unit-train loading capacity of 2,000 tph and can load a 130-car unit train. The power requirement for the Cambria plant as currently configured averages approximately 5,500 kilovoltampere (kVA). Water consumption at the plant averages approximately 100 gallons per minute (gpm).